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Tax slip mailing schedule for Manulife Investments



Due diligence meetings in Toronto

I just returned from 2 days of meetings in Toronto where I met with financial analysts and fund managers. Over the past 6 months markets and fund returns have been tracking as we expected. I met with bond manager Terry Carr who is managing over $35 Billion in bonds and has a return of over 10% in the past 12 months.

These meetings allowed us to discuss current market forecasts, touching on expectations in the U.S. and Canadian economy. Terry commented “These are dangerous times” but like Charles Dickins wrote in a Tale of Two Cities “ It was the best of times, it was the worst of times”.  It seems that we are not in the worst of times at the moment but we always have to be prepared for the worst.

Wisdom dictates that we need to “Plan for the worst and hope something better happens!”. I will be unpacking my discussions and research in upcoming blog posts, stay tuned.

Economic Summit West Palm Beach

I just attended the Irrational Economic Conference in West Palm Beach Florida. The conference included the world renowned economist Harry Dent and also Dr. Lacy Hunt who was formerly of the US Fed and is in charge of over $5 billion in pension money. The speakers laid out the dangers and opportunities coming in 2017 for the financial world.

Succesful Bidder Sues His Own Agent for Appraisal Shortfall
Can a successful bidder sue his own Agent after the property fails to appraise?
We looked at a situation where Bill submitted an unconditional Offer in a bidding war, defaulted on the transaction and now has $170,000 in losses.
The appraisal came up short.
Here is the scenario. Bob puts his property on the market at $540,000. That really doesn’t make that much sense, since he paid $600,000 for it last year.
The market has moved up 15% since that time, so, doing the calculations that should mean about $690,000. Bob did nothing to the property, no improvements whatsoever.
The “marketing efforts” associated with the $540,000 listing are designed to create a bidding war which will suggest that this property is heavily sought after.
The problem at the present time is that in Toronto this strategy seems to work, or at least it works on enough people. If he were to list at $640,000 he might only get 10 Offers, but at $540,000 he has another 10 hopefuls, all assuming that they are going to be the lucky ones. Of course, you appreciate that likely it is only the top 10 who can really afford it anyways.
Bob gets 20 Offers for the property, and as the game is played sends everyone back to improve their Offers.
Bill is getting anxious, he and his wife have been looking for three years and to this point in time have lost out on 9 properties, all in competition. So, what does Bill do? Bill stretches and offers $800,000, that’s $110,000 over market and $260,000 over asking. His Offer is attractive to Bob since there are no conditions.
Naturally, he gets the “good news” he is the successful bidder. Bill pays over the $75,000 deposit and looks forward to the closing in 45 days.
What’s the problem? Within a few days, he gets the “bad news”, he doesn’t qualify for a mortgage which will allow him to close this deal. The appraisal came in at $700,000, and that was generous. The appraiser and the Bank both think that he overpaid by a ridiculous amount, and he did, but certainly not with their money!
Does Bill have a claim against his own Agent for negligence.
The issue for Agents is one of “informed consent”. That means, read clients their rights, get their client’s response, document in writing the response and instructions, and the Agent is “good to go”. So, what’s the problem with all of this? Agents don’t know what to say, or if they say something, it’s either wrong or confusing. For a lawsuit, this is not a good way to start.
In our example, we really need to assess the level of Bill’s sophistication. If Bill is a lawyer, seasoned investor or vice president of a Bank, that’s not good for Bill.
However, it’s far more likely that Bill is unsophisticated and easily influenced, otherwise this wouldn’t have happened.  He may be a first time buyer and not be involved in any regular line of work which would make him “market savvy”. This means that he is “vulnerable” and essentially that is the basis of a lawsuit.
A Buyer’s agent must investigate, determine and verify the material facts, that is, anything that might affect the value of a property. Here we have the property underlisted. Did Bill know this? Is he aware that will drive more potential buyers into the bidding process? But, some of that demand is artificial. Bob paid $600,000 for it, so he is not going to take less than that in a rising market. This is a “material fact”. The Agent needs to prove that this fact was provided to Bill.
There is also the market research associated with the property. The rise in price would take the property value up by 15% to $690,000.
Now, we come to the bidding war game and valuations. Every dollar over the $690,000 is at risk of not being supported in an appraisal. What does that mean? It simply means that Bill must have another source of funds for this, because it won’t be the Bank.
Every dollar that he bids over the $690,000 is at risk and requires separate funding.
In our example, Bill bid $800,000 and won. That means he needs $70,000 down (10%) and another $90,000 to top up the bid. His Agent should have discussed this with him. If Bill assumed the risk, that is one thing, if he didn’t know, then, he has a potential lawsuit.
OREA Form 127 comes to mind. It deals with “informed consent”.
What were the available options:
  •  Do not participate in this bidding war
  • Include a condition on financing 
  • Include a condition on satisfactory appraisal 
  • Include a provision for a Seller take back second mortgage for the deficiency 
In order for an Agent to successfully defend an action by Bill, the Agent will have to prove that these facts were properly communicated to Bill, that Bill understood and that Bill elected to proceed assuming the attendant risks.
So, that information needs to reduced to writing! It can be in a document like Form 127, it can be in a letter, in an email or even in a text. The difficulty is that text is usually too short and is less likely to contain all the information necessary for Bill to make an informed choice.
Bill’s case is based upon not having the right information at hand in a timely manner.

Brian Madigan LL.B. Broker

Dan Loney presented with the 2016 IDC Worldsource Humanitarian Award

Ron Madzia is the president of IDC Worldsource and presented Dan with the 2016 IDC Worldsource Humanitarian Award. This presentation was made in Toronto at the National Awards Banquet. It was based on the efforts of Loney Financial working with children in Guatemala and advocacy for orphaned children in Canada.

2015 tax slip mailing schedule for Manulife Investments

This chart summarizes the 2015 tax slip mailing schedule for Manulife Investments.

Dan meets with Terry Carr of Manulife Investment

Dan recently met with Terry Carr who manages $35 Billion for Manulife Investment clients. During lunch they discussed the current bond market and the opportunity that lies ahead in the corporate bond market. Also other topics like liquidity in the bond markets past and present and where opportunity for the bond market will be in the future.

Tax slip mailing schedule

Manulife has the following dates planned to mail tax slips:

Tax Form Target Mail Date
RRSP receipts - March to December 2012 February 1
T5/R3 February 15
T4A/R1, T4A/R2, T4RSP/R2, T4RIF/R2 February 20
T3/R16 February 22
NR4 - Registered and Non-Registered February 28


Bonds outperform Stocks for the first time in a 30 year window.

Here is a picture of Dan Loney meeting with one of our top money managers, Collin Gordon of Vantage Point Investment Management Inc. in Calgary. Collin and Dan work together in managing accounts for organizations to custom design investment portfolios that suit the client's particular needs. In some situations, a portfolio must designed to comply with directions from the board of directors of an organization or managing capital for large building projects with short term needs.

This was a successful meeting, as short term results came in at over 6% for the year with a bond and cash portfolio.

Dan Loney appointed to Manulife Bank Advisory Council
  This past week Dan was appointed to the Manulife Bank Advisory Council, meeting with Doug Conick president and chief executive and top bank executives in Toronto.

The purpose of the council is to provide feedback to Manulife Bank on how they can best serve their clients.

Manulife Bank is committed to a better way of banking for Canadians and has led the way with ground breaking products like Manuone.

Travel Insurance

Loney Financial now has travel insurance available through Manulife Financial.

You can’t expect to have a medical emergency away from home, or to have to cancel a trip due to an emergency but you can be prepared for these events. Take this opportunity to choose the plan that’s right for you if you are traveling for pleasure or on business.

Click on the link below to protect yourself and your health before traveling.

Click here for more info

Lifecheque® Basic Critical Illness Insurance

If you are looking for an affordable, simple solution to meet your need for critical illness insurance, Manulife has the answer. Lifecheque Basic offers critical illness protection at a low cost, and with a hassle-free application process.

Lifecheque Basic is a simplified critical illness insurance plan that provides a one-time benefit upon a diagnosis of one of the five most common conditions: heart attack, stroke, cancer, aortic surgery and coronary bypass. It requires no underwriting or medical tests, only a signed declaration of good health.  Exclusions and restrictions apply.

For more information on this insurance or to purchase a plan, click on the link below.

Click here for more info

The Association Health and Dental Plan

An alternative for members of both small and large associations, no matter whether they are single, have a young family or are nearing their retirement years.

The Association Health & Dental Plan offers 8 distinct plan choices which feature[s] prescription drug coverage, dental, hospital, vision, EHC and AD&D. The Association health and dental plan protects your clients against routine and unexpected health care expenses by filling in the gaps left by their provincial health insurance plan.

For more information on this insurance or to purchase a plan, click on the link below.

Click here for more info

Flexcare®/FollowMe™ Health

Loney Financial now offers health and dental insurance available through Manulife Financial.

If you are not covered by a group health plan or not satisfied with the health coverage you have today, Manulife Financial may be the answer for you.

Now you can earn AIR MILES® reward miles just for obtaining a quote on a Flexcare®/FollowMe™ Health plan. And you can earn additional AIR MILES® reward miles every 6 months just for staying on as a Flexcare®/FollowMe™ Health customer.

For more information on health and dental insurance or to purchase a plan, click on the link below.

Click here for more info  


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